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ViciDraco · 36-40, M
That's because of the increases in the interest rate for the fed, which have been historically low since 2008.
That pricing adjustment is a correction caused not purely by inflation, but by the end of cheap and free credit. Which is a good thing in the long term. With interest at a reasonable place, people will be more careful with taking out debt. That's good. Because they have to be more careful about taking out debt, and because the cost of the debt is high, housing prices are going to need to start coming down in order for people to afford them. That is also good. Housing as a whole becomes less attractive to investers because the cost of debt limits their ROI. That is amazingly good. We need investers out of housing so that people can actually afford to live.
I know long term thinking and bigger pictures can be challenging for people. But instead of cheaper debt we can now do smart things to bring down housing costs by doing things like build more affordable homes and fewer luxury dwellings. We can make foreign investment in our properties unattractive. And we can treat houses like homes rather than portfolio assets.
Do more, Joe!
That pricing adjustment is a correction caused not purely by inflation, but by the end of cheap and free credit. Which is a good thing in the long term. With interest at a reasonable place, people will be more careful with taking out debt. That's good. Because they have to be more careful about taking out debt, and because the cost of the debt is high, housing prices are going to need to start coming down in order for people to afford them. That is also good. Housing as a whole becomes less attractive to investers because the cost of debt limits their ROI. That is amazingly good. We need investers out of housing so that people can actually afford to live.
I know long term thinking and bigger pictures can be challenging for people. But instead of cheaper debt we can now do smart things to bring down housing costs by doing things like build more affordable homes and fewer luxury dwellings. We can make foreign investment in our properties unattractive. And we can treat houses like homes rather than portfolio assets.
Do more, Joe!
whowasthatmaskedman · 70-79, M
@ViciDraco You are 100% correct and I might add that its the Wall st funds invested in mortgages taht will fight this tooth and nail,since these investor/owners are their milk and honey, turning and churning loans regularly, with fees and commissions every time. This is the minefield of the 2008 crash all over again. And Wall st will be looking for a bail out. again..😷